Commercial Lease and Service Agreement Overview

Lease Agreement Terms

• Rent: Minimum rate per machine per month (or as otherwise stated on the ‘Available Laundry Room Properties’ and/or Applicants Cost Proposal)
• Utilities: 30% of Rent
• Term: 8 years with 7 (1) year renewal options (or as otherwise stated on the ‘Available Laundry Room Properties’)
• Security Deposit: 2x the Rent Amount & Utilities

Service Agreement Terms:

• Hours of Operation: Seven (7) days per week from 8 a.m. to 8 p.m.
• Services: Tenant shall use and occupy the Premises as a laundromat for use solely by NYCHA residents (the “Permitted Use”), and for no other purpose.
• Equipment:
  
  • Tenant shall provide, install, and maintain new washing machine(s) and new dryer(s) suitable for commercial use.
  • Additionally, Tenant must ensure that at minimum, one each of the washers and dryers are accessible by people with disabilities as defined in
    the Americans with Disabilities Act, 42 U.S.C. § 12101, et seq.
• Care & Maintenance:
  • Tenant, throughout the Term, and at its sole cost and expense, must take good care of the Premises and maintain same in clean, sanitary, and safe
    condition, free of all hazards, as may be necessary and/or legally required to ensure the health and safety of the Landlord’s Related Parties, the
    Authority Residents and other persons affected by the Premises;
  • Tenant will, at all times during its occupancy of the Premises, be responsible for all costs of operating the Premises (except those expressly assumed by Landlord) and all other operating costs of Tenant, including, but not limited to: staffing needs; cleaning and maintenance services; supplies; equipment; furnishings; fixtures; and telephones.
  • Tenant must assume the cost and expense of maintaining all Tenant Systems, all Alterations made by Tenant, and must install and maintain, at Tenant’s sole cost and expense, all security services and security devices necessary to ensure the proper security of the Premises and the proper
    security of any persons or property at any time located on the Premises in connection with the Permitted Use of the Premises.
  • Tenant agrees to keep clean the vestibule or entry of the Premises; to maintain the Premises at its own expense in a clean, orderly and sanitary condition and free of insects, rodents, vermin and other pests; to remove garbage, trash, rubbish and other refuse, and to keep such refuse in
    proper containers (or in a trash room maintained by Tenant) inside the Premises until called for to be removed;
  • Except with respect to Alterations, Tenant Repairs and Tenant Systems, Landlord shall be required to perform repairs to the structural portions of the Building, Building Systems and sidewalks, as necessary, unless such repairs have been necessitated by the acts or omissions of Tenant.

Selection Process:

• Minimum Qualifications Requirements: NYCHA will consider only those Applicants who are able to meet the following minimum qualifications (“Minimum
  Qualifications”):

• • Applicant should have a minimum of seven (7) years’ experience providing similar laundry services. If the Applicant is a joint venture, at least one of
    the joint venture Applicants must have at least seven years’ experience.
  • Applicant must provide a minimum of one reference, but preferably two references, from a past or present client for services similar in size and
    scope.
  • Applicant must provide a written certification that it will be able to commence work immediately after execution of a Laundry Lease, if it is
    selected.
  • Applicant (or at least one of the joint venture partners if the Applicant is a joint venture) must provide evidence it has provided services similar in
    size and scope in at least three locations.
  • Applicant must certify that it has filed all applicable federal, New York State, and New York City income tax returns (and paid or timely protested
    any taxes due) for the four-year period prior to the submission of this application.
  • Applicant must provide evidence that it is authorized to do business in the State of New York.
  • Applicant must provide all required licenses.
  • In the Cost Proposal, the Applicant must demonstrate and explain its fee structure for calculating the Total Monthly License Fee.

• Evaluation Criteria’s: Applications will be evaluated by the Department of Management and Planning (“DMP”). The DMP will also consider information
  provided by Applicant during interviews and presentations, if any. The evaluation will be determined by total points given to each Applicant in each of the below
  categories.

• • Applicant’s Cost Proposal: NYCHA will evaluate the methodology of the Total Monthly License Fee and Utilities (30 points maximum, 5 points minimum)
  • Qualifications, experience, and operational capacity of the Applicant, including ability to meet operations repair and maintenance requirements
    as well as financial stability. (25 points maximum, 5 points minimum)
  • Quality of Equipment: New washers and dryers are required. Points will be awarded for energy efficiency, use of technology, and other customer service considerations. (25 points maximum, 5 points minimum)
  • Quality of the Proposal submitted, including but not limited to approach and proposed methodology to accomplish the Scope of Services, any recommendations for Permanent Improvements that it determines are necessary to make the Laundry Facility(ies) commercially viable and/or to
    protect the health and safety of NYCHA Residents, and other client experience recommendations. (10 points maximum, 5 points minimum)
  • Staffing Model, including but not limited to a MWBE or Section 3 Utilization Plan (10 points maximum, 5 points minimum)

For clarification and validation purposes, the evaluation of the written Proposals may require NYCHA to (i) interview the Proposer, (ii) seek presentations by the Proposer, and/or (iii) engage in telephone, e-mail and other correspondence with authorized Proposer representatives. Additionally, NYCHA reserves the right to
confer with any additional references it deems necessary in order to discern relevant past performance or other information.

For more information or to schedule a viewing, please contact:
Laundry@nycha.nyc.gov